US DoD Procurement & RDT&E Analysis

Transcription

1 US DoD Procurement & RDT&E Analysis GFY2012 Budget 1

2 TABLE OF CONTENTS I. FUNDING SUMMARY...3 Overview...4 II. EXHIBITS OVERVIEW & DISCLAIMER III. DISCRETIONARY BUDGET, PROCUREMENT & RDT&E SUMMARY CHARTS.22 IV. KEY ARMY PROCUREMENT & RDT&E PROGRAMS Aircraft Procurement Missile Procurement Weapons & Tracked Combat Vehicles Procurement Ammunition Procurement Other Procurement (Electronics, Communications / Tactical Vehicles) Army RDT&E Programs V. KEY AIR FORCE PROCUREMENT & RDT&E PROGRAMS Aircraft Procurement Missile Procurement Other Procurement Air Force RDT&E Programs VI. KEY NAVY PROCUREMENT & RDT&E PROGRAMS Aircraft Procurement Missile Procurement Shipbuilding & Conversion Procurement Other Procurement Procurement Marine Corps Ammunition Navy & Marine Corps Navy RDT&E Programs VII. KEY SOCOM AND MDA PROCUREMENT & RDT&E PROGRAMS Aircraft Procurement SOCOM Other Procurement - SOCOM Missile Defense Agency Procurement Missile Defense Agency RDT&E VIII. NUMBER OF NEW PLATFORMS & WEAPONS UPGRADES Air Force Build Plans Army Build Plans Navy Build Plans SOCOM Build Plans

3 I. FUNDING SUMMARY 3

4 OVERVIEW Budget Overview President Obama submitted his first Department of Defense ( DoD ) budget of his second term to Congress on April 10, 2013 for the government fiscal year ( GFY ) The budget was provided two months beyond the required deadline of the first Monday in February. The initial budget did not include funding detail for Overseas Contingency Operations ( OCO ) which was submitted as part of an amended budget plan on May 20, Notably missing from the GFY2014 budget is any impact from the automatic spending cuts required under sequestration which amounts to $43 billion and $52 billion in GFY2013 and GFY2014. The GFY2014 amended budget includes funding detail by program through GFY2018. Historical funding detail by program from GFY2009 through GFY2012 reflects actual results. GFY2013 funding levels by program reflect those budgeted for last fiscal year. The chart outlined above highlights the actual budget authority from GFY2001 through GFY2012. Fiscal Year 2013 and Fiscal Year 2014 reflect the President s Budget submittal, neither of which has been approved or are anticipated to be approved. Because of the Government s inability to pass a budget, the Department of Defense continues to operate under Continuing Resolution Funding. While the figures outlined by the Department of Defense and summarized in this report will likely differ, potentially materially, from Continuing Resolution Funding that will take into account sequestration, the President and DoD s budget submittal provides insight into program areas of emphasis and de-emphasis. The GFY2014 DoD budget continues the flat to down trend in base budget funding that began in GFY2010. The GFY2014 budget continues to decrease OCO funding, reducing funding to under $80 billion in GFY2014. The end result is a 1.3% decrease in overall DoD spending from the previous fiscal year and a 12% decrease from the peak funding in GFY2010. From GFY2001 to the peak period in GFY2010, total DoD funding increased by a compound annual growth rate ( CAGR ) of 9.1%. Since GFY2010, the overall DoD budget has declined by a CAGR of 3.2%. The primary driver of this decline is an overall reduction in OCO spending resulting from further troop drawdown in Afghanistan. The average annual active deployed troop level in GFY2013 was 63,000 troops (Afghanistan) compared with 174,000 in GFY2010 (Iraq and Afghanistan). This is budgeted to decrease to 4

5 38,000 troops in GFY2014. The Afghanistan National Security Forces are now leading 80% of all conventional combat operations and is in the security lead for areas in Afghanistan covering 87% of the Afghan population. The impact of continued U.S. Government budget deficits combined with nearly a decade of uninterrupted growth in Defense spending has led to further proposed reductions in DoD base budget spending. Below (left) is a chart outlining President Obama s projected base budget spending for GFY2014 through GFY2017 provided in each of the last three budget proposals. Since the GFY2012 budget submittal, the amount of base budget funding has decreased each year for the periods GFY2014 through GFY2017. The figures outlined in the current GFY2014 base budget for GFY2014 through GFY2017 reflect an approximately 10% reduction from the same periods outlined in the GFY2012 budget. Base Budget Dollar Trends Comparison between GFY2012, GFY2013 and GFY2014 President's Budget $ in billions $ in billions Potential Impact of Sequestration Comparison between budgets before and after Sequestration GFY2014 GFY2015 GFY2016 GFY2017 GFY14- GFY17 FY2012 President's Budget $586 $598 $611 $622 $2,417 GFY2013 Before Seq. After Seq. GFY2014 Before Seq. After Seq. FY2013 President's Budget ,203 Base Budget $528 $485 $527 $475 FY2014 President's Budget ,179 OCO Total Budget $614 $571 $606 $554 Variance (FY12 to 13) ($53) ($52) ($55) ($54) ($214) % Change -7.0% -8.6% Variance (FY13 to 14) ($7) ($5) ($5) ($7) ($24) Variance (FY12 to 14) ($60) ($57) ($59) ($62) ($238) As outlined above (left), base budget spending (excluding OCO) was projected to increase from $586 billion in GFY2014 to $622 billion in GFY2017 per the President s GFY2012 Defense Budget. The revised budget and projected outlook outlined in the GFY2014 budget has an average annual reduction of nearly $60 billion per year over this same period, or approximately 10% from the GFY2012 estimates. The reductions outlined reflect today s fiscal reality, reduced wartime footing, and the administrations attempt to comply with the Budget Control Act (aka sequestration) by smoothing out the defense reductions over time rather than including the harsher cuts specified in the Act. Again, it is important to note that these reduced numbers do not comply with what is required by the Budget Control Act. Taking into account the spending caps required by sequestration, the GFY2014 base budget would decrease by another $52 billion to $475 billion, levels not experienced since GFY2008 (see chart on the right). In total, overall DoD funding could be reduced to $554 billion in GFY2014 (including sequestration and OCO funding). 5

6 As shown in the chart below, the GFY2014 budget reduces spending in nearly every appropriation category on a total dollar basis. The only appropriation category that continues to receive increases in their base budget is Operations & Maintenance ( O&M ). The appropriations category that is most impacted from the proposed reductions in defense spending is procurement with an anticipated 6% decrease in base funding, 34% decrease in OCO procurement and a total reduction of 8% from GFY2013 budgeted levels. Below is a summary of some of the major variances in the appropriation categories. $ in Billions FY09 Actual FY10 Actual FY11 Actual FY12 Actual FY13 Budget FY14 Budget $ in Billions FY09 Actual FY10 Actual FY11 Actual FY12 Actual FY13 Budget FY14 Budget Base O&M $ $ $ $ $ $ Base Military Personnel $ $ $ $ $ $ OCO OCO ARA 4.3 ARA Total O&M $ $ $ $ $ $ Total Military Pers. $ $ $ $ $ $ Growth in Base O&M 9% 3% 6% 2% 1% 6% Growth in Base Military Pers. 7% 8% 1% 3% -1% -2% Growth in OCO O&M -3% 23% 0% -22% -27% 0% Growth in OCO Military Pers. 4% -16% -2% -31% 24% -30% Growth in Total O&M 6% 8% 4% -7% -8% 4% Growth in Total Military Pers. 7% 5% 1% 0% 1% -5% $ in Billions FY09 Actual FY10 Actual FY11 Actual FY12 Est. FY13 Budget FY14 Budget $ in Billions FY09 Actual FY10 Actual FY11 Actual FY12 Est. FY13 Budget FY13 Budget Base Procurement $ $ $ $ $ $ 99.3 Base RDT&E $ 78.5 $ 79.7 $ 75.8 $ 71.4 $ 72.8 $ 67.5 OCO OCO ARA ARA 0.3 Total Procurement $ $ $ $ $ $ Total RDT&E $ 80.0 $ 80.2 $ 76.7 $ 71.9 $ 73.0 $ 67.6 Growth in Base Procurement 1% 6% -2% 0% 1% -6% Growth in Base RDT&E 1% 2% -5% -6% 2% -7% Growth in OCO Procurement -47% -15% -7% -42% -40% -34% Growth in OCO RDT&E -24% -56% 61% -40% -53% -52% Growth in Total Procurement -18% 0% -3% -9% -4% -8% Growth in Total RDT&E 1% 0% -4% -6% 2% -7% Operations & Maintenance OPERATIONS & MAINTENANCE FUNDING PROCUREMENT FUNDING Historical DoD Funding by Major Category (GFY09 to GFY14) MILITARY PERSONNEL FUNDING RDT&E FUNDING Funding for O&M continues to be the largest expenditure within the DoD. O&M spending will represent 45% of the overall DoD Budget in GFY2014, exceeding the combined spending of Procurement and RDT&E by $100 billion (28% of total spending combined). Below is a summary of the major drivers within O&M spending. 1. The Afghanistan Security Forces Fund (included in OCO funding) is budgeted to increase from $5.75 billion (requested) in GFY2013 to $7.7 billion in GFY2014 (a 35% increase). The entire increase is allocated towards supporting the 195,000 Afghan National Army members with additional training, equipment, operations and sustainment. It further invests in improvements in literacy and leadership, as well as transportation, medical, logistics, intelligence systems and equipment. Afghanistan Security Forces Funding is temporarily higher in GFY2013 to ensure that Afghan forces are ready to take over full responsibility for security throughout the country by the end of $2.7 billion of the increase in Base O&M funding is directly related to annual price increases to do the previous years work at current rates. 6

7 Military Personnel The total active and reserve military force (including OCO) for GFY2014 is projected at million, a decrease of 48,400 (or 2.2%) from GFY2013 levels of million. The Army and Marines Corps are projected to experience the largest declines of 3.2% and 3.0% from the GFY2013 enacted levels with the majority of the decline coming from active military personnel. To the right is a summary of anticipated troop level changes. DoD civilian employee levels are budgeted to decline 2% from 777,151 in GFY2013 to 765,042 in GFY2014. Military basic pay is projected to increase by 1.0% in GFY2014, less than the 1.8% derived from the formula calculation used in current law. DoD civilian employees are budgeted for the same modest 1% increase. The total budget for Military Personnel is expected to decline slightly as compared to GFY2013, due to the continued reduction in troop levels and a reduction in troops actively engaged in combat activities which require higher pay. In total, the average number of active troops in Afghanistan is forecasted to decrease from 63,000 in GFY2013 to 38,000 in GFY2014. Research, Development, Test & Evaluation ( RDT&E ) Enacted Budgeted GFY2013 GFY2014 Reduction Army 1,115,300 1,079,200-36, % Navy 385, ,700-2, % Marines 236, ,800-7, % Air Force 506, ,400-2, % TOTAL 2,243,500 2,195,100-48, % RDT&E funding is budgeted to continue to decline from its peak in GFY2010. The primary factors impacting RDT&E funding are reductions in Navy and Defense Wide (e.g. SOCOM, Missile Defense Agency, Defense Information Systems Agency, Office of the Secretary of Defense) funding. Below is a summary of major changes in RDT&E funding. 1. Army RDT&E funding decreases by $819 million from GFY2013 to GFY2014. Army RDT&E restructures and cuts funding of the Ground Combat Vehicle ( GCV ) program. Total GCV funding of $592 million in GFY2014 is a $48 million decrease from $640 million the previous year but is down significantly from the $1.4 billion budgeted for GFY2014 in the President s GFY2013 DoD Budget. The program is being restructured to add 18 months to the Technology Development and EMD phases to better mature technologies. In addition, to reduce costs only one contractor team will proceed into EMD instead of the original plan to carry two. Total savings from restructuring GCV is estimated at $2.6 billion from GFY2014 through GFY2017 when compared to the previous estimates made in the GFY2013 budget. Patriot / MEADS Combined Aggregate Program ( CAP ) funding ended in GFY2013 as the Design Development phase was completed resulting in a decrease in funding from $401 million in GFY2013 to $0 in GFY2014. Increases funding for the Army Integrated Air & Missile Defense ( AIAMD ) Program from $277 million budgeted in GFY2013 to $365 million in GFY Navy RDT&E funding decreases by $1.9 billion from GFY2013 to GFY2014. Advanced Submarine System Development program increased from $555 million in GFY2013 to $853 million in GFY2014. Funding cycle consistent with transition to EMD phase and in line with levels projected for GFY2014 in the GFY2013 budget. Provides $147 million in GFY2014 to fund the further development of an Unmanned Carrier Based Strike Aircraft. Funding level is consistent with what was projected for GFY2014 in the GFY2013 budget. Reduced RDT&E funding for MQ-4C Triton (aka BAMS) from $658 million in GFY2013 to $375 million in GFY

8 Reduced funding for the F-35 EMD Phase from $1.5 billion in GFY2013 to $1.0 billion in GFY2014. Littoral Combat Ship funding decreased slightly from $429 million in GFY2013 to $406 million in GFY2014. GFY2014 s budget is within $28 million of the President s previous projection for GFY2014 as outlined in the GFY2013 DoD Budget. 3. U.S. Air Force RDT&E funding decreased by $983 million from GFY2013 to GFY2014. Funding for the new KC-46 Tanker is budgeted to decrease from $1.82 billion in GFY2013 to $1.56 billion in GFY2014. This however is consistent with the amount projected for GFY2014 in the GFY2013 budget. Funding for the Next Generation Bomber increased from $292 million to $379 million from GFY2013 to GFY2014. However, the amount budgeted for GFY2014 is down from $550 million projected for GFY2014 in the GFY2013 budget. Funding of U.S. Air Force satellite programs (SBIRS High, AEHF, Space Situational Awareness and GPS III) is projected to remain flat at approximately $1.25 billion. Funding for the Joint Strike Fighter EMD is budgeted to decrease from $1.2 billion in GFY2013 to $816 million in GFY2014. Classified programs budget is budgeted to increase from $11.2 billion to $11.9 billion from GFY2013 to GFY Continues decrease in Missile Defense RDT&E from $6.2 billion in GFY2013 to $5.6 billion in GFY2014. Cancels Precision Tracking Space System, reducing funding from $297 million in GFY2013 to $0 in GFY2014. Will save $1.7 billion in total. Next Generation Aegis Missile (Standard Missile-3 Block IIB) has been restructured, effectively terminating the program. The DoD is transitioning its efforts to focus on common kill vehicle technology for the Ground Based Interceptor exo-atmospheric kill vehicle ( EKV ) and future Standard Missile Variants. Funding reduced from $224 million in GFY2013 to $0 in GFY2014. Restructuring will save $2.1 billion over the life of the program. Increased funding for the BMD Mid-Course Segment from $903 million in GFY2013 to $1.03 billion in GFY2014. GFY2014 budgeted amount is also an increase from what was previously projected ($915 million) for GFY2014 in the GFY2013 budget. Cancels funding for Directed Energy Research. Funding reduced from $47 million in GFY2013 to $0 in GFY2014. Saves an estimated $200 million through FY2017 as a result of the cancellation. DoD RDT&E Budget Authority (By Military Branch) - Includes OCO FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Actual Actual Actual Actual Budget Budget Army RDT&E 12,102,637 11,562,635 9,953,621 8,403,603 8,815,074 7,996,102 Air Force RDT&E 26,528,809 27,654,843 27,480,854 26,481,707 26,695,410 25,711,946 Navy RDT&E 19,803,442 19,938,370 17,931,225 17,727,772 17,908,260 16,009,206 Defense-Wide RDT&E 21,624,911 20,598,737 21,129,622 19,100,951 19,390,526 17,733,316 Operational Test & Evaluation 185, , , , , ,300 Tanker Repl., Transfer Fund (239,800) 291, TOTAL RDT&E 80,005,201 80,233,537 76,687,416 71,902,070 72,998,458 67,636,870 % Growth 0.6% 0.3% -4.4% -6.2% 1.5% -7.3% 8

9 Procurement Total Procurement funding is budgeted to decrease from $115 billion in GFY2013 (budgeted) to $106 billion in GFY2014. Excluding OCO, Base Procurement funding is projected to decrease by 6% from $106 billion in GFY2013 to $99 billion in GFY2014. Below is a summary of notable programs and major changes in Procurement funding by category. 1. U.S. Army Aircraft Programs: Delays Apache Block III New Builds, reducing planned procurements of 10 aircraft in GFY2014 (as outlined in the GFY2013 budget) to the current number of four. Delays ordering an additional 26 aircraft that were planned to be procured from GFY2015 through GFY2017. Total savings of $1.3 billion. Shifts focus to remanufacturing Apache Block III Aircraft. Increasing planned procurement from 38 aircraft in GFY2014 (outlined in the GFY2013 budget) to 42 aircraft in the current budget. Adds 27 aircraft from GFY2015 through GFY2017 that were previously not budgeted, bringing the total to 48 aircraft per year. Procurement for the Gray Eagle UAV (formerly Sky Warrior) increased from $518 million (19 units) in GFY2013 to $550 million in GFY2013 (19 units). Previously budgeted 15 units for GFY2014 in the GFY2013 DoD budget. UH-72 LAKOTA Light Utility Helicopter procurement significantly reduced from a planned procurement of 31 helicopters in GFY2014 and 10 in GFY2015 (per the GFY2013 Budget Report) to 10 in GFY2014 and 0 in GFY2015. Saves approximately $400 million in planned procurement in GFY2014 and GFY2015 from what was previously budgeted. Increases procurement of the UH-60 Blackhawk from $1.2 billion and 57 aircraft previously budgeted for GFY2014 (per the GFY2013 budget) to $1.2 billion and 65 aircraft. Shifts forward production of 33 aircraft previously budgeted in GFY2017 through GFY2019 to GFY2015 and GFY U.S. Army Wheeled & Tracked Combat Vehicle ( W&TCV ) Programs: Paladin Integrated Management upgrade remains on track with 18 vehicles scheduled to be upgraded in GFY2014 ($260 million) up from 17 vehicles and $206 million in GFY2013. Reduces funding for the M1 Abrams Tank Modifications from a budgeted level of $258 million for GFY2014 (as outlined in GFY2013 budget) to $178 million in the current budget. However, the funding amount is $49 million higher than GFY2013 levels. Added the procurement of 32 Hercules Improved Recovery Vehicles at a cost of $111 million. Previously budgeted at $0 for GFY2014 in the GFY2013 budget. Bradley Modification funding remains consistent at $158 million, a slight increase of $10 million from GFY2013 but a decrease of $24 million from the amount previously projected for GFY2014 in the GFY2013 budget. 3. U.S. Army Other Procurement Programs: Decreases funding for Family of Heavy Tactical Vehicles from $55 million (441 vehicles) in GFY2013 to $15 million (220) in GFY2014 as the program continues its war time wind-down. Reduces funding for Family of Medium Tactical Vehicles from $374 million (1,397 vehicles) in GFY2013 to $224 million (837 vehicles) in GFY2014. Program is budgeted to end in GFY2014 with the completion of the 837 vehicles. Amount is down from $274 million (907 vehicles) previously projected for GFY2014 in the GFY2013 budget. 9

10 Continues funding the Joint Tactical Radio System (10,523 systems) and WIN-T network (2,139), however, funding is down for JTRS from $556 million in GFY2013 to $383 million in GFY2014. JTRS was budgeted for $552 million in GFY2014 in the GFY2013 budget. WIN-T funding is budgeted to increase from $893 million in GFY2013 to $973 million in GFY2014. However, both the quantities and funding levels are down from what was projected for GFY2014 in the GFY2013 budget of $1.2 billion and 3,336 units. DCGS-A Funding continues at approximately $274 million and 2,700 units per year. 4. U.S. Air Force Aircraft Programs: Total procurement funding for the F-35 Joint Strike Fighter ( JSF ) aircraft remains stable at $3.4 billion (19 aircraft). Procurement in GFY2015 and beyond is down slightly from previous projections made in the GFY2013 DoD budget. Previously budgeted 32 aircraft for GFY2015 ramping to 48 aircraft in GFY2016 and GFY2017. Now projecting 30 aircraft for GFY2015 ramping up to 44 aircraft in GFY2016 and 48 aircraft by GFY2017. Cuts procurement of MQ-9 Reaper UAVs in half to 12 aircraft in GFY2014, down from 24 in GFY2013. Previously projected 24 aircraft for GFY2014 in the GFY2013 budget. Reduces costs by approximately $280 million in GFY014. Delays procurement of six C-130J aircraft in GFY2014, reducing the total quantity projected to be procured from 12 (as outlined in GFY2013 budgeted) to six in the current budget. However, funding has been increased from $68 million in GFY2013 to $700 million in GFY2014. Continues to fund recapitalization of Special Operations Rotary Fleet (HC-130, AC-130, and MC-130) from a total of seven aircraft ($691 million) in GFY2013 to 10 aircraft ($1.2 billion) in GFY2014. Previously budgeted the procurement of 15 total aircraft for GFY2014 in the GFY2013 DoD Budget at a total cost of approximately $1.5 billion. Procures the last three CV-22 Osprey at a cost of $231 million, consistent with the schedule and budget for GFY2014 in the GFY2013 budget. 5. U.S. Air Force Missile & Other Procurement Programs: Increases Evolved Expendable Launch Vehicle procurement from four vehicles ($1.9 billion) in GFY2013 to five vehicles ($2.0 billion) in GFY2014. AMRAAM and JDAM procurement quantities significantly increased from 113 ($230 million) and 4,678 ($156 million) in GFY2013 to 199 ($340 million) and 9,844 ($273 million) units in GFY2014. AMRAAM moves towards full rate production and JDAM missile procurement increased to replenish wartime usage. Reduces Classified Air Force funding from $17.0 billion in GFY2013 to $16.9 billion in GFY U.S. Navy Aircraft Program: Maintains procurement levels of 10 F-35 JSF aircraft (4 Carrier Variants, 6 STOVL Variants) in GFY2014 at a total cost of $2.8 billion. Increase procurement of V-22 Osprey s from 17 aircraft in GFY2013 ($1.5 billion) to 18 aircraft in GFY2014 ($1.5 billion). Out year production quantities between 18 and 19 aircraft per year, consistent with levels budgeted for the same period in the GFY2013 budget. Increases rate of procurement funding for the P-8A Poseidon from 13 in GFY2013 to 16 in GFY2014, however, total funding levels decreased from $2.7 billion to $2.5 billion. The projected procurement of 16 aircraft ($2.5 billion) is less than what was previously projected for GFY2014 in the GFY2013 budget (17 aircraft at a total cost of $3.6 billion). Build rates are projected to continue at 16 aircraft in GFY2015 and GFY2016, decreasing to 14 aircraft by GFY2017. This compares with 20 aircraft for GFY2015 and GFY2016 and 13 for GFY2017 that was projected in the GFY2013 budget. 10

11 Maintains procurement of five E-2D AHE aircraft in GFY2014 at a total costs of approximately $1.3 billion. Procures no F/A-18E/F Hornets for FY2014 with only $207 million provided for spares and modifications. This is a decrease from 26 aircraft and $2.1 billion in GFY2013. Shifts funds to procure 21 EA-18G aircraft at a total cost of $2.0 billion, an increase from 12 EA-18G aircraft ($1.0 billion) in GFY2013. Previous projections for GFY2014 outlined in the GFY2013 budget called for the procurement of 13 F/A-18 E/F Hornets at a total cost of $1.2 billion and no EA-18Gs with minimal funding of $22 million. 7. U.S. Navy Shipbuilding and Conversion Program: Provides funding for one DDG 51 AEGIS Destroyers at a total cost of $2.0 billion, a decrease from two ships in GFY2013 ($3.5 billion) but consistent with the projections for GFY2014 as outlined in the GFY2013 budget. Procures two Virginia Class submarines at a total cost of $5.4 billion. Projects two submarines per year from GFY2015 through GFY2018. Maintains funding for the Littoral Combat Ship at $1.9 billion (four ships). 8. Defense-Wide Procurement Program (Missile Defense Agency & SOCOM): Increases the procurement of AEGIS Ballistic Missile Defense Systems from $390 million (29 AEGIS systems) in GFY2013 to $581 million (52 AEGIS systems) in GFY2014. However, the projected funding level and unit requirements are down from $757 million and 69 systems that were projected for GFY2014 in the GFY2013 budget. THAAD procurement remains at 36 systems per year through GFY2018 the same as previously projected in the GFY2013 budget. Continues to ramp up funding for the Precision Strike Package, funding the production of two packages at $108 million (an increase from $73 million in GFY2013). The Precision Strike Package provides a roll-on capability for C-130 s enabling them to transform into a gunship system similar to the AC-130. Increases funding for Rotary Wing Upgrades and Enhancements from $75 million in GFY2013 to $112 million in GFY2014. Previously projected $85 million in funding for GFY2014 as outlined in the GFY2013 budget. 11

12 DoD Procurement Budget Authority (By Military Branch) - Includes OCO FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Actual Actual Actual Actual Actual Budgeted Budgeted ARMY Aircraft Procurement 6,129,783 6,025,219 6,628,187 8,053,587 6,471,115 5,857,708 5,796,175 Missile Procurement 2,474,132 2,851,700 1,723,148 1,913,963 1,487,979 1,489,635 1,462,728 W&TCV Procurement 9,442,389 6,161,310 3,255,633 2,914,456 2,084,335 2,079,549 1,597,267 Ammunition Procurement 2,745,982 2,377,783 2,382,286 2,220,969 2,035,131 2,238,358 1,721,337 Other Procurement 40,563,388 21,245,713 22,630,110 17,033,653 8,761,476 9,547,498 7,068,341 JIEDDO Procurement 4,317,469 3,116,746 1,883,560 2,793,768 2,441,984 1,675,400 1,000,000 TOTAL ARMY PROCUREMENT 65,673,143 41,778,471 38,502,924 34,930,396 23,282,020 22,888,148 18,645,848 AIR FORCE Aircraft Procurement 18,613,094 17,899,177 13,178,876 15,027,760 13,932,667 13,049,405 11,514,569 Missile Procurement 5,029,906 5,648,379 6,029,072 5,365,456 5,911,555 5,944,524 5,367,486 Ammunition Procurement 938,350 1,023,332 1,077,240 1,058, , , ,407 Other Procurement 19,234,455 19,610,620 20,100,539 20,337,989 20,420,771 20,271,143 19,335,427 TOTAL AIR FORCE PROCUREMENT 43,815,805 44,181,508 40,385,727 41,789,210 40,873,188 39,883,515 37,136,889 NAVY Aircraft Procurement 15,742,021 14,765,094 19,790,882 16,829,351 17,988,669 17,870,014 18,168,347 Weapons Procurement 3,374,782 3,229,949 3,351,761 3,651,300 3,231,226 3,233,180 3,208,693 Shipbuilding & Conversion 13,425,049 12,685,870 13,842,903 15,429,791 14,808,763 15,010,419 14,077,804 Ammunition (Navy & MC) 1,640,232 1,422,412 1,489,283 1,460, , , ,088 Other Procurement 6,872,993 5,563,710 5,796,987 6,204,274 6,189,912 6,089,106 6,328,225 Marine Corps 6,297,366 4,308,837 3,657,726 3,210,409 2,656,566 2,374,959 1,473,095 TOTAL NAVY PROCUREMENT 47,352,443 41,975,872 47,929,542 46,785,462 45,790,822 45,465,674 44,052,252 OTHER Defense-Wide (i.e. SOCOM, MDA, DIS 4,788,302 4,063,798 5,389,141 5,341,584 5,308,985 5,130,294 4,645,358 Defense Production Act Purchases 94, , ,281 34, , ,004 25,135 National Guard & Res. Equipment 1,742,630 1,240, , ,067 1,000, MRAP Vehicle Fund - 592, , ,000 2,600, ,800 Chem Agents & Munition Dest. 1,512,724 1,505,634 1,560,760 1,467,307 1,554,422 1,563,935 1,057,123 TOTAL OTHER PROCUREMENT 8,137,808 7,502,488 8,996,182 8,393,114 10,633,541 6,865,233 5,841,416 TOTAL PROCUREMENT 164,979, ,438, ,814, ,898, ,579, ,102, ,676,405 % Growth 23% -18% 0% -3% -9% -5% -8% Chart Note: The chart includes all funding for Overseas Contingency Operations and the American Recovery and Reinvestment Act but does not include select cutbacks made in the GFY2013 budget figures. 12

13 Variance between GFY2013 DoD Budget and GFY2014 DoD Budget Procurement Quantities by Major Platform The following pages outline the variances in the number of platforms that were procured or projected to be procured from GFY2010 through GFY2017 in the GFY2013 DoD budget as compared to what is currently outlined in the GFY2014 budget for the same period. See charts on page 27 for the details on the number of actual and planned platforms to be procured from GFY2010 through GFY2017 as outlined in the GFY2014 budget. Since the U.S. Government only provides projection detail to the public for the next five government fiscal years, the GFY2013 DoD budget only included program detail through GFY2017. Therefore, no comparison was provided for GFY2018, even though detail was available for that year in the GFY2014 DoD budget. This comparison only includes aircraft, ships, wheeled and tracked combat vehicles and tactical vehicles. Actual Actual Actual Budgeted Budgeted Projected Projected Projected USAF Aircraft Procurement Plan FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Joint Strike Fighter C-17 Aircraft C-130J HC-130 Recap (2) MC-130 Recap (3) Joint Cargo Aircraft C-12 A (Liberty) C-40 Aircraft Bombardier Global Express BD C-37 Gulfstream AC-130 Recap Total Fixed Wing (5) Powered Flight Program Light Mobility Aircraft Light Attacked Armed Reconnaissance Aircraft Total Training Common Vertical Lift Support Platform CV-22 Osprey HH-60 Pavehawks (operational loss replacement) - - (1) Total Rotary Wing - - (1) RQ-11 Micro UAS STUASL0 Micro UAS Global Hawk MQ-9 Reaper (12) Total UAV (12) TOTAL - - (1) - (17)

14 Actual Actual Actual Budgeted Budgeted Projected Projected Projected U.S. Army Ground Vehicle Procurement Plan FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Stryker Ground Vehicle Assault Breacher Vehicle (4) (1) 9 (12) Joint Assault Bridge (10) (10) (18) 15 M882 Hercules - Improved Recovery Vehicle Total Wheeled & TCV - New Build (11) (9) 3 Abrams Upgrade Program Paladin Integrated Management (PIM) & FAASV Complete System Upgrades TOTAL (11) (9) 27 U.S. Army Aircraft Procurement Plan Utility Fixed Wing Aircraft C-12 Cargo Airplane - MARSS Constant Hawk EMARSS Saturn Arch Total Fixed Wing UH-72 LAKOTA (LUH) (21) (10) - - Apache Block III Upgrade Apache Block III New Build (6) (11) (4) (11) UH-60 Blackhawk (18) CH-47 - New Build & SLEP Kiowa Warrior + Wartime Replacement Aircraft Total Rotary Wing (1) 24 (18) MQ-1C Gray Eagle UAS RQ-11 Raven Micro UAV (189) 42 (84) - BCT AUV Total UAV (185) 42 (84) - TOTAL (167) 43 (60) (18) U.S. Army Tactical Vehicle Procurement Plan HMMWV - New Build HMMWV - RECAP Family of Medium Tactical Vehicles (70) Family of Heavy Tactical Vehicles - - 2,575 - (231) (3) Armored Security Vehicles (ASV) Mine Prot. Veh. Fam. (Husky, Panther, Buffalo) Mine-Resistant Ambush-Protected (MRAP) Mods Heavy Expanded Mobility Tactical Truck ESP - - (7) - (115) Heavy Armored Sedan Total Tactical Vehicles - - 2,954 - (416)

15 Actual Actual Actual Budgeted Budgeted Projected Projected Projected U.S. Navy Shipbuilding Proc. Plan FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 CVN 78 - Ford Aircraft Carrier SSN - Virginia Class Submarines DDG 1000 Zumwalt Destroyers DDG 51 Arleigh Burke Destroyers Littoral Combat Ships (LCS) Landing Platform Dock (LPD) Landing Helicopter Assault (LHA) Lewis & Clark Dry Cargo Ship (T-AKE) Powhatan Fleet Ocean Tugs (T-ATF) (2) 2 Mobile Landing Platform (MLP) Moored Training Ships Ship to Shore Connector (LCAC Replacement) (1) (1) - Joint High Speed Vessel (JHSV) Total New Construction (1) (3) 2 LCAC Service Life Extension AGOR Oceanographic g( Ships ) (new build) Upgrades / Non-Combat Ships TOTAL (1) (3) 2 U.S. Navy Aircraft Procurement Plan F-35B (STOVL JSF) F-35B (CV JSF) F/A-18E/F (13) EA-18G E-2D AHE (2) - 1 P-8A (MMA) (1) (4) (4) 1 C-40A (1) HC-130J KC-130J (1) (1) (1) Total Fixed Wing (7) (5) - AH-1Z/UH-1Y (1) (1) 1 (3) CH-53K (HLR) V MH-60R (2) (9) - MH-60S Total Rotary Wing (1) (3) (6) 1 MQ-8B (5) (2) - (4) RQ STUALS0 Micro - Scan Eagle (5) (5) - - BAMS UAS (3) (1) - (1) Total UAV (13) (8) - (5) T-6A/B (JPATS) (2) Total Training (2) TOTAL (9) (18) (11) (4) 15

16 Actual Actual Actual Budgeted Budgeted Projected Projected Projected SOCOM Aircraft Procurement Plan FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 PC-12 & M (2) AC/MC-130J Retrofits Total Fixed Wing - - (2) MH-47 Chinook MH-60 Modernization CV-22 Osprey Total Rotary Wing STUASL0 Micro UAS Total UAV

17 Conclusion The GFY2014 DoD Budget reflects the administration s attempt to offer an alternative to sequestration that complies with the Budget Control Act s requirement to achieve $487 billion in savings from 2012 through However, what the White House is proposing is not consistent with law that requires immediate across the board spending cuts by the same percentage. While industry will have to wait and see if sequestration will remain in its current form, what is clear is that Defense spending has reached a plateau. Logic would seem to dictate that the administration and Congress should have the ability to choose where the DoD cuts should occur rather than a blanket across the board approach. As mentioned in PB&W s GFY2013 DoD Budget Report, PB&W anticipates base funding will fluctuate between $475 billion and $550 billion (depending on sequestration) and OCO Funding will likely continue to decrease until it reaches maintenance levels of $15 to $20 billion over the next three to five fiscal years. This will lead to overall defense budgets between $550 billion and $600 billion. While these cutbacks are quite significant, it should be noted that the DoD Base Budget has not experienced or budgeted a significant year over year decrease since 9/11. If sequestration is not modified, base funding levels of approximately $475 billion in GFY2014 will be in line with base funding levels experienced in GFY2008. To put this in perspective, even with sequestration, combined base budget spending and OCO funding in GFY2014 will be $554 billion, this exceeds the annual revenue of the three largest U.S. Automobile Suppliers (GM, Ford & Chrysler) by over $200 billion and the combined revenue of Apple, Microsoft, Google and IBM by $150 billion. The combined annual military expenditures from countries that rank two through six with the largest defense budgets (China, Russia, UK, Japan and France) was approximately $435 billion. Companies that will likely feel the brunt of procurement cutbacks are large primes, subprimes and vendors that are more dependent on major platforms such as the F-35, GCV or Missile Defense. Companies serving the Department of Defense should look to the following areas where we believe funding emphasis will continue to be placed: Funding for Intelligence, Surveillance & Reconnaissance ( ISR ) should remain steady as the government seeks to improve actionable intelligence for persistent monitoring and precision strike capabilities. The DoD has stated that ISR assets in critical theaters will be protected against Funding for shipbuilding will remain stable over the next five years as the DoD rebalances forces to the Asian Pacific region. The budget for GFY2014 includes no modifications in procurement quantities for critical shipbuilding assets from GFY2014 through GFY2017 as compared to what was projected in GFY2013. The DoD will continue to procure two Virginia Class Submarines per year for the foreseeable future and from GFY2015 through GFY2018, two DDG 51 Arleigh Burke Destroyers. By 2020, the U.S. will have 60% of its Navy forces stationed in the Pacific region. Funding for Special Operations Rotorcraft (new production, modifications or enhancements) are anticipated to continue to be robust. With a continued shift to more precision strike capability to address terrorist threats in the Middle East and the Horn of Africa, the need for enhanced air combat support and transportation is essential. Cyber Security continues to be a major area of emphasis as the government looks to protect U.S. networks and infrastructure from attack. Persistent cyber-attacks from China, North Korea and other adversarial nations are causing the U.S. to increase both its defensive and offensive cyber security posture. The GFY2014 DoD budget projects to spend $4.7 billion on enhancing its cyber capabilities, an increase from the $3.9 billion that is currently enacted in GFY2013. Increased funding for Precision Guided Munitions. The ability to make surgical strikes in denied access environments or in heavily populated urban areas where the risk of collateral damage is high is continuing to drive the need for more advanced weaponry. GFY2014 budgets $3.2 billion for the procurement of Precision Guided Munitions. Improving battlefield communications and information sharing from programs such as WIN-T and DCGS-A. Funding through FY2015 is anticipated to be at or near $1.0 billion for WIN-T Procurement with DCGS-A funding increasing from $275 million to over $300 million per year. 17

18 U.S. Army helicopter funding for the next three fiscal years appears solid as Blackhawk production continues to remain between 65 and 89 rotorcraft and the DoD continues to build / provide Services Life Extensions of the CH-47 Chinook. Funding for KC-46 Aircraft Tanker, New Bomber and Unmanned Carrier Based Strike aircraft continue to be the primary new aircraft platforms that are going to be developed and procured. MQ-4C Triton production is anticipated to begin ramping up in GFY2015. Funding for the Aegis Ballistic Missile Defense System is anticipated to significantly increase beginning in GFY2015 from 29 systems in GFY2013 to 72 in GFY2015. PB&W believes the following areas may receive less funding priority: Funding for the Family of Heavy and Medium Tactical Vehicles are expected to continue decline. Excluding GCV there is no new major combat vehicle under development and GCV funding continues to be reduced. Total Wheeled & Tracked Combat Vehicle Procurement is expected to remain at current maintenance levels as some programs continue to receive funding just to keep the supplier base in business. Build rates of traditional medium and low altitude UAVs used in Iraq and Afghanistan such as Predators, Reapers, STUAS and Gray Eagle UAVs have likely peaked in the near term. The current emphasis is on penetrating denied access environments which will likely necessitate the need for longer range and higher altitude UAVs (e.g. Reaper Extended Range, Unmanned Carrier Based Strike Aircraft) that can evade anti-aircraft weapons. The Missile Defense Agency s RDT&E budgets are going to continue to face scrutiny. While established technologies may receive more emphasis and funding (see Aegis BMD procurement above), the size of Missile Defense RDT&E, at historically near $7.0 billion, is ripe for further reductions. For further information or to inquire about the investment banking services of Philpott Ball & Werner, please contact Ted Werner or Nick Berry. Aerospace & Defense Group Nicholas W. Berry Managing Director Charlotte nberry@pbandw.com Charlotte Office 2815 Coliseum Centre Drive, Suite 410 Charlotte, North Carolina Phone: Fax: Ted Werner Managing Director Boston twerner@pbandw.com Boston Office 48 Central Street Manchester, Massachusetts Phone: Fax: All Security Transactions conducted by Philpott Ball & Werner, LLC, member FINRA/SIPC. 18

19 II. OVERVIEW & DISCLAIMER 19

20 EXHIBITS OVERVIEW & FUNDING CHARTS Exhibits Overview The exhibits outline the DoD s authorized and proposed funding for unclassified Procurement and RDT&E programs from GFY2009 to GFY2017. Where available, the data includes the amount funded for normal appropriations ("Base Budget"), OCO (Wars in Iraq & Afghanistan) and from the American Recovery & Reinvestment Act ("ARA"). PB&W has segregated the Procurement and RDT&E funding by Military Branch and Major Category (i.e. - Aircraft, Shipbuilding, Weapon Systems, Tracked Vehicles). Funding by program includes OCO and ARA funding. Acronyms & Definitions The following are definitions of terms and acronyms found throughout this report. ARA American Recovery & Reinvestment Act Appropriation Adjusted the base appropriated amount of funding Base Budget Amount of normal appropriations before funding for Overseas Operations CR Continuing Resolution DoD U.S. Department of Defense GFY or FY Government Fiscal Year ending September 30th Major Category Procurement categories outlined in the DoD Budget (i.e. shipbuilding, aircraft, tracked vehicles, other procurement) MODS Modifications OCO Overseas Contingency Operations (war in Afghanistan and limited engagement in Iraq) O&M Operations & Maintenance The amount of units to be produced under the Total Funded Budget Authority RDT&E Research, Development, Test & Evaluation Disclaimer & Notes The following notes should be considered when reviewing the exhibits and tables. 1. Results through GFY2012 reflect actual results. The GFY2013 and GFY2014 budgets reflect the Obama administration s proposed budget which has not been approved by Congress and is not expected to be approved. The GFY2013 budgeted amounts by major category (e.g. Army Aircraft, Navy Shipbuilding) and in total reflect the President s budget with an undistributed adjustment to match the Annualized Continuing Resolution funding level by appropriation. These numbers represent the administration s forward thinking on programs; however, these numbers can and often do materially change each year based on numerous factors involving the program, the economy or defense priorities. 2. The figures presented in this report by outlined by Major Category, by Program and in Total for GFY2013 and GFY2014 do not factor in the required cutbacks imposed by sequestration. 20

21 3. Excluding the chart on pg. 4, GFY2013 OCO total figures exclude $2.0 billion in cancellations made by Congress applicable to GFY2009, GFY2011 and GFY2012 OCO appropriations. GFY2014 OCO figures exclude $1.3 billion of proposed congressional cancellations. These cancellation figures were excluded as there was no detail provided outlining where these cancellations were made or proposed to be made. In addition, making these adjustments would negate the consistent approach PB&W has used to outline the DoD Budget. 4. Excluding the chart on pg. 4, GFY2013 Base Budget figures exclude $4.5 billion in cancellations made by Congress applicable to prior year appropriations. PB&W excluded these cancellations for the same reasons outlined in #3 above. 5. The President s proposed budget is modified each year by both the House and the Senate (both additions and subtractions). Funding for GFY2009 through GFY2012 represents actual funding which will not match what was proposed by the President in those fiscal years due to changes made by both the Senate and House. 6. The funding details by specific program may not include all potential funding for that specific program. 7. Funding detail is as of the April 2013 DoD budget submission and subsequent May 2013 OCO amended release for GFY2014 and does not take into account subsequent events. 8. Funding detail by specific program is selected based on its size and PB&W s perception of strategic importance. The DoD Budget has significant additional detail on each program that is not included in this analysis due to PB&W s desire to create a summary overview. 9. All dollars are in thousands (000s) unless otherwise noted. Quantities are the actual quantities specified. 21

22 III. DISCRETIONARY BUDGET, PROCUREMENT & RDT&E SUMMARY CHARTS 22

23 Actual Actual Actual Actual Proposed Budget Proposed Budget FY2009 % FY2010 % FY2011 % FY2012 FY2013 % FY2014 % Military Personnel Base Budget 125,625,329 19% 135,778,591 20% 137,044,017 20% 141,818,404 22% 139,918,046 23% 137,076,631 23% Overseas Operations 19,920,150 3% 16,805,147 2% 16,394,826 2% 11,293,469 2% 14,060,094 2% 9,853,340 2% Total Budget Authority 145,545,479 22% 152,583,738 22% 153,438,843 22% 153,111,873 24% 153,978,140 25% 146,929,971 24% Operations & Maintenance Base Budget 175,923,708 26% 181,111,403 26% 192,358,647 28% 196,835,382 30% 198,384,173 32% 209,403,145 34% American Recovery & Reinvestment Act 4,255,000 1% - 0% - 0% - 0% - 0% - 0% Overseas Operations 90,470,769 14% 111,714,627 16% 111,998,790 16% 87,132,652 13% 63,986,203 10% 64,120,324 11% Total Budget Authority 270,649,477 41% 292,826,030 42% 304,357,437 44% 283,968,034 44% 262,370,376 42% 273,523,469 45% Procurement Base Budget 100,339,555 15% 106,008,443 15% 104,125,947 15% 104,504,126 16% 105,515,329 17% 99,309,426 16% Overseas Operations 35,098,784 5% 29,805,932 4% 27,772,235 4% 16,075,445 2% 9,687,241 2% 6,366,979 1% Total Budget Authority 135,438,339 20% 135,814,375 20% 131,898,182 19% 120,579,571 19% 115,202,570 19% 105,676,405 17% RDT&E Base Budget 78,483,874 12% 79,691,685 12% 75,815,841 11% 71,375,712 11% 72,752,942 12% 67,520,236 11% American Recovery & Reinvestment Act 300,000 0% 0% - 0% - 0% 0% 0% Overseas Operations 1,221,327 0% 541,852 0% 871,575 0% 526,358 0% 245,516 0% 116,634 0% Total Budget Authority 80,005,201 12% 80,233,537 12% 76,687,416 11% 71,902,070 11% 72,998,458 12% 67,636,870 11% Military Construction Base Budget 21,756,081 3% 20,529,252 3% 14,768,229 2% 11,096,998 2% 11,363,659 2% 9,468,920 2% American Recovery & Reinvestment Act 2,190,000 0% - 0% - 0% - 0% - 0% - 0% Overseas Operations & Fund Transfers 2,868,584 0% 2,047,870 0% 1,222,852 0% 269,703 0% - 0% - 0% Total Budget Authority 26,814,665 4% 22,577,122 3% 15,991,081 2% 11,366,701 2% 11,363,659 2% 9,468,920 2% Family Housing Base Budget 3,157,877 0% 2,258,698 0% 1,819,544 0% 1,682,946 0% 1,692,778 0% 1,542,713 0% American Recovery & Reinvestment Act 690,000 0% - 0% - 0% - 0% - 0% - 0% Overseas Operations & Fund Transfers - 0% 7,953 0% - 0% - 0% - 0% - 0% Total Budget Authority 3,847,877 1% 2,266,651 0% 1,819,544 0% 1,682,946 0% 1,692,778 0% 1,542,713 0% Revolving and Management Funds Base Budget 3,155,806 0% 4,599,701 1% 2,348,799 0% 2,640,085 0% 2,691,903 0% 2,276,527 0% Overseas Operations 861,726 0% 1,547,102 0% 485,384 0% 435,013 0% 503,364 0% 264,910 0% Total Budget Authority 4,017,532 1% 6,146,803 1% 2,834,183 0% 3,075,098 0% 3,195,267 1% 2,541,437 0% Base Budget 508,442,230 76% 529,977,773 77% 528,281,024 77% 529,953,653 82% 532,318,830 86% 526,597,598 87% American Recovery & Reinvestment Act 7,435,000 1% Overseas Operations 150,441,340 23% 162,470,483 23% 158,745,662 23% 115,732,640 18% 88,482,418 14% 80,722,187 13% Total Budget Authority 666,318, % 692,448, % 687,026, % 645,686, % 620,801, % 607,319, % % Growth - Base Budget 6.10% 4.24% -0.32% 0.32% 0.76% -0.63% % Growth - Overseas Operations % 8.00% -2.29% % % % % Growth - Total Budget 0.03% 3.92% -0.78% -6.02% -9.64% -5.94% Note: Numbers include rescissions of Budget Authority but exclude Budget Transfers made by Congress and Discretionary Trust and Special Funds. GFY2013 and GFY2014 do not include cancellations or proposed cancellations from Congress for prior year appropriations totaling $6.5 billion ($2.0B in OCO) in GFY2013 and $1.3 billion in GFY2014 (all OCO). 23

24 ARMY DoD Procurement Funding Budget Authority (By Military Branch & Major Category) FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Actual Actual Actual Actual Budgeted Budgeted Actual Actual Actual Actual Budgeted Budgeted NAVY Aircraft Procurement Aircraft Procurement Appropriation Adjusted 4,748,475 5,170,498 5,333,449 5,333,734 5,371,508 5,024,387 Appropriation Adjusted 14,128,425 18,641,585 15,659,802 17,507,734 17,705,432 17,927,651 Overseas Contingency Ops. 1,276,744 1,457,689 2,720,138 1,137, , ,788 Overseas Contingency Ops. 636,669 1,149,297 1,169, , , ,696 Total Funded Budget Authority 6,025,219 6,628,187 8,053,587 6,471,115 5,857,708 5,796,175 Total Funded Budget Authority 14,765,094 19,790,882 16,829,351 17,988,669 17,870,014 18,168,347 % Change - Baseline 10% 9% 3% 0% 1% -6% % Change - Baseline 14% 32% -16% 12% 1% 1% % Change - OCO -30% 14% 87% -58% -57% 59% % Change - OCO -81% 81% 2% -59% -66% 46% % Change - Total -2% 10% 22% -20% -9% -1% % Change - Total -6% 34% -15% 7% -1% 2% Missile Procurement Weapons Procurement Appropriation Adjusted 2,147,659 1,247,194 1,570,135 1,361,423 1,439,982 1,334,083 Appropriation Adjusted 3,200,451 3,301,061 3,560,798 3,190,156 3,209,680 3,122,193 Overseas Contingency Ops. 704, , , ,556 49, ,645 Overseas Contingency Ops. 29,498 50,700 90,502 41,070 23,500 86,500 Total Funded Budget Authority 2,851,700 1,723,148 1,913,963 1,487,979 1,489,635 1,462,728 Total Funded Budget Authority 3,229,949 3,351,761 3,651,300 3,231,226 3,233,180 3,208,693 % Change - Baseline 10% -42% 26% -13% 6% -7% % Change - Baseline 4% 3% 8% -10% 1% -3% % Change - OCO 36% -32% -28% -63% -61% 159% % Change - OCO -90% 72% 79% -55% -43% 268% % Change - Total 15% -40% 11% -22% 0% -2% % Change - Total -4% 4% 9% -12% 0% -1% Weapons & Tracked Combat Vehicles Procurement Shipbuilding & Conversion Procurement Appropriation Adjusted 3,354,665 2,083,167 2,017,460 2,047,218 2,064,127 1,597,267 Appropriation Adjusted 12,685,870 13,842,903 15,429,791 14,808,763 15,010,419 14,077,804 Overseas Contingency Ops. 2,806,645 1,172, ,996 37,117 15,422 - Overseas Contingency Ops Total Funded Budget Authority 6,161,310 3,255,633 2,914,456 2,084,335 2,079,549 1,597,267 Total Funded Budget Authority 12,685,870 13,842,903 15,429,791 14,808,763 15,010,419 14,077,804 % Change - Baseline 13% -38% -3% 1% 1% -23% % Change - Baseline -6% 9% 11% -4% 1% -6% % Change - OCO -57% -58% -23% -96% -58% -100% % Change - OCO NA NA NA NA NA NA % Change - Total -35% -47% -10% -28% 0% -23% % Change - Total -6% 9% 11% -4% 1% -6% Ammunition Procurement Ammunition Procurement (Navy & MC) Appropriation Adjusted 2,101,208 1,999,596 1,851,084 1,826,750 1,880,865 1,540,437 Appropriation Adjusted 1,073, , , , , ,267 Overseas Contingency Ops. 276, , , , , ,900 Overseas Contingency Ops. 348, , , , , ,821 Total Funded Budget Authority 2,377,783 2,382,286 2,220,969 2,035,131 2,238,358 1,721,337 Total Funded Budget Authority 1,422,412 1,489,283 1,460, , , ,088 % Change - Baseline -8% -5% -7% -1% 3% -18% % Change - Baseline 2% -24% 11% -34% 1% -2% % Change - OCO -41% 38% -3% -44% 72% -49% % Change - OCO -40% 94% -17% -43% -10% -28% % Change - Total -13% 0% -7% -8% 10% -23% % Change - Total -13% 5% -2% -37% -3% -10% Other Procurement (Electronics / Comms / Tactical Vehicles) Other Procurement Appropriation Adjusted 13,122,921 14,764,588 10,631,821 7,427,131 7,531,591 6,465,218 Appropriation Adjusted 5,338,569 5,524,393 5,887,439 5,953,787 5,990,224 6,310,257 Overseas Contingency Ops. 8,122,792 7,865,522 6,401,832 1,334,345 2,015, ,123 Overseas Contingency Ops. 225, , , ,125 98,882 17,968 Total Funded Budget Authority 21,245,713 22,630,110 17,033,653 8,761,476 9,547,498 7,068,341 Total Funded Budget Authority 5,563,710 5,796,987 6,204,274 6,189,912 6,089,106 6,328,225 % Change - Baseline -44% 13% -28% -30% 1% -14% % Change - Baseline -3% 3% 7% 1% 1% 5% % Change - OCO -52% -3% -19% -79% 51% -70% % Change - OCO -84% 21% 16% -25% -58% -82% % Change - Total -48% 7% -25% -49% 9% -26% % Change - Total -19% 4% 7% 0% -2% 4% JIEDDO Procurement Marine Corps Appropriation Adjusted - 121, , Appropriation Adjusted 2,216,965 2,601,602 1,621,290 1,422,570 1,431,276 1,343,511 Overseas Contingency Ops. 3,116,746 1,762,010 2,577,900 2,441,984 1,675,400 1,000,000 Overseas Contingency Ops. 2,091,872 1,056,124 1,589,119 1,233, , ,584 Total Funded Budget Authority 3,116,746 1,883,560 2,793,768 2,441,984 1,675,400 1,000,000 Total Funded Budget Authority 4,308,837 3,657,726 3,210,409 2,656,566 2,374,959 1,473,095 % Change - Baseline -100% NA 78% -100% #DIV/0! #DIV/0! % Change - Baseline -38% 17% -38% -12% 1% -6% % Change - OCO -27% -43% 46% -5% -31% -40% % Change - OCO -23% -50% 50% -22% -24% -86% % Change - Total -28% -40% 48% -13% -31% -40% % Change - Total -32% -15% -12% -17% -11% -38% TOTAL ARMY PROCUREMENT TOTAL NAVY PROCUREMENT Appropriation Adjusted 25,474,928 25,386,593 21,619,817 17,996,256 18,288,073 15,961,392 Appropriation Adjusted 38,643,773 44,724,870 43,061,433 43,481,596 43,949,280 43,370,683 Overseas Contingency Ops. 16,303,543 13,116,331 13,310,579 5,285,764 4,600,075 2,684,456 Overseas Contingency Ops. 3,332,099 3,204,672 3,724,029 2,309,226 1,516, ,569 Total Funded Budget Authority 41,778,471 38,502,924 34,930,396 23,282,020 22,888,148 18,645,848 Total Funded Budget Authority 41,975,872 47,929,542 46,785,462 45,790,822 45,465,674 44,052,252 % Change - Baseline -27% 0% -15% -17% 2% -13% % Change - Baseline -1% 16% -4% 1% 1% -1% % Change - OCO -47% -20% 1% -60% -13% -42% % Change - OCO -60% -4% 16% -38% -34% -55% % Change - Total -36% -8% -9% -33% -2% -19% % Change - Total -11% 14% -2% -2% -1% -3% 24